Turnaround Brings Company Back From the Brink
Bank loan workout officers rarely encounter a situation where a company is transferred to the workout group, the company can get its financial house in order, and then it is able to be transferred back to the originating loan department to begin a new phase of its banking relationship. Though...
Sudden Death Averted for Pandemic Victim
Lenders, turnaround professionals, and their counsel faced unparalleled challenges with the sudden onset of the COVID-19 pandemic in 2020. As corporate management teams struggled to keep operations flowing under pandemic guidelines, lenders worked day and night from their homes to determine which...
Can Deliver Without Bankruptcy
Sometimes events of default occur that motivate a bank to seek an exit of the credit, such as changes in upper management, litigation that distracts the business, assertion of lender liability claims, and material financial reporting issues—not to mention payment defaults. When events like these...
Communication Is a Key Part in Making Lenders Whole
Five minutes before midnight on September 19, 2021, Flexible Funding LLC and its subsidiary, InstaPay Flexible, filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Northern District of Texas, Fort Worth Division. The next day, at 12:27 p.m., these debtors filed an emergency motion...
The Right Time: From POR to Full Recovery & Equity
Banks’ special assets groups are getting busy. Considering continuing supply chain problems, inflation, rising interest rates, and low unemployment, borrowers are suffering. Lenders must ascertain which credits possess the characteristics necessary for financial recovery and which might follow Bed...
The Secret Sauce for Successful Bankruptcies Requires the Right Ingredients
Distressed companies often seem like a tale of two cities. On the one hand, there are those with good profit and loss (P&L) statements but bad balance sheets. On the other, there are companies with good balance sheets but bad P&Ls. The Penn Central bankruptcy was one of the largest and most...
Bank Uses State Receivership to Avoid Foreclosing on Problematic Apartment Building
Most lenders would prefer to avoid litigation in connection with foreclosing on income-producing property. Sometimes, however, it is the best approach when dealing with a litigious borrower and a troubled income-producing property that, if foreclosed upon, would require extensive renovation to...
Pressures Continue to Grow in the Ag, Logistics Industries
I hope you enjoy this month’s Journal of Corporate Renewal , focused on the best bank loan workouts. I have been involved in over 400 problem loan workouts with some of the top workout professionals in our industry, including workouts with several banks. As many of you know, every problem situation...